Question

if 100 million shares of common stock are issued with a par value of $2 and additional paid in capital is $800 million, the total par value of the issued shares is:

Answer 1

The total par value of the issued shares is calculated as follows:

Total Par Value = Number of Shares Issued × Par Value per Share

In this case, the number of shares issued is 100 million, and the par value per share is $2. Therefore:

Total Par Value = 100,000,000 × $2

Total Par Value = $200,000,000

Note that the additional paid-in capital of $800 million is not part of the par value of the shares, but rather reflects the amount that investors paid above the par value to purchase the shares.